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Unformatted text preview: 2 ∑ i ² ˆ U * i ³ 2 = 1 n2 ∑ i ² c 1 ˆ U i ³ 2 = c 2 1 s 2 . 1 (d) For H : β * 1 = 0 , we have T * = ˆ β * 1 / s s 2 * / X i ( X * i¯ X * ) 2 = c 1 c 2 ˆ β 1 / s c 2 1 s 2 / X i ( c 2 X ic 2 ¯ X ) 2 = c 1 c 2 ˆ β 1 / s ( c 1 /c 2 ) 2 s 2 / X i ( X i¯ X ) 2 = ˆ β 1 / s s 2 / X i ( X i¯ X ) 2 = T. Note that T is the test statistic for testing H : β 1 = 0 . (e) Since T = T * and df’s are the same in both cases, pval = pval * . Thus, rescaling the dependent variable and regressor has no eﬀect on testing for signiﬁcance of the slope parameter. 2...
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This note was uploaded on 03/24/2012 for the course ECON 326 taught by Professor Whisler during the Spring '10 term at UBC.
 Spring '10
 whisler
 Economics

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